Hero MotoCorp Slumps After Income Tax Department Raids Company Premises

Shares of Hero MotoCorp came under free fall after the Income Tax department conducted raids and searches at various premises of Hero MotoCorp as part of tax evasion investigation against the country's largest two-wheeler manufacturer, officials said Wednesday morning. Hero MotoCorp shares fell as much as 3.81 per cent to hit an intraday low of Rs 2,328.85 on the BSE. Its premium on Rs 2,400 strike price put option surged by 200 per cent at the day's lowest level, data from the National Stock Exchange showed.

Offices and residential premises of the promoters including chairman and CEO of the group Pawan Munjal in Gurugram, Haryana, Delhi and few other locations are being covered under the raid, they said.

A team of officials of the department are looking at financial documents and other business transactions of the company and its promoters, they said. 

A response from the company is awaited.

Hero MotoCorp became the world's largest two-wheeler manufacturer in 2001, in terms of unit volume sales in a calendar year, and has maintained the title for the past 20 consecutive years.

Till date, it has sold over 100 million units across domestic and international markets. 

Led by Pawan Munjal, the company has presence across 40 countries spanning Asia, Africa, and South and Central America.

As of 12:04 pm, Hero MotoCorp shares traded 2 per cent lower at Rs 2,373, underperforming the Sensex which was down 0.3 per cent.